House Bill 864 aims to enhance the enforcement of the Financial Responsibility Law of 1977 in Tennessee by introducing new requirements for the registration and renewal of motor vehicle registrations. The bill mandates that the commissioner or county clerk will not register or renew a vehicle unless the owner provides proof of compliance with the Financial Responsibility Law. This proof can be in the form of documentation from an authorized insurance provider or a certificate from the commissioner of safety. Additionally, the bill allows for electronic proof of insurance and establishes a vehicle insurance verification program to assist in confirming compliance.

The bill also proposes changes to the penalties associated with coverage failures. It increases the coverage failure fee from $25 to $50 and introduces higher fees for repeated offenses, with penalties escalating to $250 for a second notice and $500 for a third notice within three years. The distribution of these fees is specified, with portions allocated to the county clerk, the department of safety, and the uninsured motorist identification fund. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 55-12-139(b)(2)(A), 55-12-139, 55-12-210(a)(2), 55-12-210, 55-12-210(b)(1)(A)